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How to avoid taxes on Adsense earnings?

Discussion in 'Business & Tax Advice' started by IM Addict, May 18, 2013.

  1. IM Addict

    IM Addict Registered Member

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    My question is simple, though I think the answer might be far more complicated.
    How can I avoid paying taxes on Adsense earnings? I live in Europe, and Google suggests that I use the EFT as paying method, but that leads the IRS right to my bank account. Google has very strict policies regarding adsense and that includes payment, so creating an account with a fake ID wouldn't be a good idea.
    Living in Europe, is it possible to make Google pay me through Google Inc. instead of Google Ireland? That way, I could use Payoneer.
    Any ideas?

    Thanks
     
  2. WayneInc

    WayneInc Senior Member

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    You can use the Peru As a country , open a bank account thr and good to go.
     
  3. meannn

    meannn Supreme Member

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    Open Swiss Bank account.
    Change your bank name to your swiss bank in adsense settings.
     
  4. mervat

    mervat BANNED BANNED

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    Yes you can open account in any location and have atm card with you
    Regards
     
  5. IM Addict

    IM Addict Registered Member

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    Swiss bank accounts are not that easy to open nowadays...
    They put lots of restrictions and I have to tell my country's IRS that I'm going to open an account in Switzerland, because when opening a bank account they require an authorization from my country's IRS to do so.
     
  6. IM Addict

    IM Addict Registered Member

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    How can I open a bank account in Peru, if I'm an EU citizen and I don't live in Peru?
    Can you give me details on how to do it, and the price involved?
     
  7. divok

    divok Senior Member

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    start a company in tax heaven , and get paid there .
    e.g Mauritus , Hong kong , Macau etc
     
  8. infoasian

    infoasian Supreme Member

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    Simply, give up your EU residence and move to a country with territorial tax regime or low tax. It's 100 legal and you won't need to worry. Or become a PT. As long as you have a residence inside EU Google and IRS will send notifications to your home country. Having a bank account in a third country won't help you at all.
     
  9. IM Addict

    IM Addict Registered Member

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    Easier said than done...
    How much would I have to spend to create an IBC? I've been looking around, but the most trustworthy alternatives seem a little pricey.

     
  10. IM Addict

    IM Addict Registered Member

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    Does Google send notifications to my home country?
    From what I read on the terms and conditions of AdSense it's up to me to inform the IRS and pay my taxes. Only if I were in Ireland things would be a bit different and google would send that info directly to Ireland's IRS, or am I missing something?
    This being said, I know that if I don't tell the IRS that Google is paying me, they'll eventually get me, but I didn't think that Google would send other EU countries IRS their "affiliates" data.

    Thanks

     
  11. infoasian

    infoasian Supreme Member

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    When international payments are executed, certain procedures are triggered by banks, auditors, revenue services and other authorities that all exchange information. You might fly under the radar for two or three years, but your chances to get away with it are less than 10% in the long run. I know some people that got caught. It was highly unpleasant and expensive for them and not worth the pennies they saved.
     
    • Thanks Thanks x 1
  12. Alpha.

    Alpha. Power Member

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    Depends on your country, but google will always inform your tax division at some point. I live in Europe myself and this is one of the biggest problems when you run a small business! You could of course reroute the whole thing through some IBC etc... but honestly at some point you either have to pay your taxes or invest a larger sum in a different solution.
     
  13. Roparadise

    Roparadise BANNED BANNED

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    1. Stop saying the IRS, it confuses the f*ck out of people
    2. Your not making enough to justify going though a IBC scheme to make money if you consider what you seen pricey so far. Just focus on reducing your taxes by using as much write off's as possible
    3. If your that worried about taxes then move to Bulgaria, its another EU nation(so you can move right now if you have the money and stay there as long as you want*) but you will only pay a flat 10% income tax no matter how much you earn.

    * As long as your not going to be a burden to Bulgaria,commit crimes, or a threat to their national security then they will let you stay as long as you want if your making money, as will any EU nation.
     
  14. IM Addict

    IM Addict Registered Member

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    1. Actually, in my country, it's called IRS, though it doesn't stand for Internal Revenue Service ;)
    2. I'm an independent worker I can't use write offs, if I choose to use write offs I would need an accountant, that costs at least ?200/month
    3. If you would pay about 40% in taxes + social security when earning little more than ?500 you would also be worried about taxes, and about how a person can live with such heavy taxes. I don't think I have the money to move to Bulgaria, and I have what some may call a life, in my country. And I would never be a burden to a country that lets me live there, that wouldn't be a polite thing to do to any country that would host me.

    Anyway, Thanks for the info.:)
     
  15. ceosam

    ceosam BANNED BANNED

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    2 words.
    YOU CAN'T.
     
  16. Roparadise

    Roparadise BANNED BANNED

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    1.Its actually RC not IRS
    2. You do not need to use an accountant to use write offs
    3. You would pay 20% income tax and 3% PRSI because of the bracket and income source
    4. Your personal write off is 1650 euro a year

    You will not be paying any taxes on 500 euros a year.

    Many people with a "life" in their current location end up moving to another city many miles away and some even to cities in far away countries. And yet they still are able to make friends in the new city and have a good time there. Your the second person on BHW in a few days to use this BS excuse to not have the ambition to live in a place that can further your IM career.
     
    Last edited: May 23, 2013
  17. IM Addict

    IM Addict Registered Member

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    Unfortunately, it's not pennies I'm talking about, it might be for you and for many people here in BHW, but to me it's not. I don't make that much money and to see almost 40% being taken by the revenue services (call it IRS or whatever) it's very hard! And this has nothing to do with online earnings, if I get a job flipping burgers, they'll take the same percentage out of my paycheck. The problem is that I live in a country where people pay high taxes even if they only earn a few hundreds of ?? per month.:(
    Guess I have to join you in Singapore, as soon as I have the money to do that. ;)
     
  18. Roparadise

    Roparadise BANNED BANNED

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    The first 32,000 euro of a persons income is taxed at 20%, Everything over 32,000 is taxed at 40%. So if you made 50,000 euros a year after credits and taxes your income tax would be 13,600 euro not 20,000 euro.

    But since you only make 500 euro a year, you wont pay any tax due to the fact there is a 1650 euro tax credit, making your income for tax purposes below 0.
     
  19. IM Addict

    IM Addict Registered Member

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    Call whatever you want to the revenue services, whatever makes less of a confusion.
    I guess that all the other points you mentioned, you are referring to Ireland.;) I can tell you that as much as they (the politicians) try to make comparisons between Ireland and my country, they are worlds apart! Wish we were like Ireland, though! In my country I do need to have an accountant to be able to use write offs, I assume that by write offs you are saying business expenses that can be deducted when it comes to pay taxes. Those percentages you talk about seem far more just than what I'm accustomed to! :) And I could see my self living in Ireland, while I would find very difficult to live in Bulgaria. I'm not getting any younger, and I want to have kids some day, and I just don't see them growing up in Bulgaria or any other eastern European country.
    By personal right offs, you mean rent, education and health related expenses, I guess? Unfortunately I don't have many of those.

    I'm talking a little more than 500 euros per month, not per year.
    You're right I shouldn't be stopped by being scared of moving, and as long as I live in Europe, there are low cost flights that get me back home in a couple of hours. Still I have two major problems to deal with, convincing my girlfriend to go with me, and having money to live abroad.
    In one thing we totally agree, the country I live in now isn't the best place at all to pursue an IM career! In fact is trying to cut my legs right from the beginning. This makes me angry, but also sad because I would like to live here and pay taxes here, in my country, to help my country get out of the situation it's in. I like my country! The problem is with the amount of taxes I pay, I don't stand a chance!
     
  20. IM Addict

    IM Addict Registered Member

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    In my country anyone that earns less than €7000 per year pays 14,5%, plus 29,6% to social security!
    What can I say but that taxes are a lot fairer in Ireland!:(